WORLD WIDE RESPONSE Chapter 8 Part 2

The Role of Financing in Implementation ~ Financing from the local source or transferring money internationally ~Financing Internationally ~Cheaper Problems ~ Reevaluation of currencies ~invested in a country with devaluated currency (US $ vs. the Japanese yen) Countertrade Strategies ~PepsiCo products for vodka in Russia

Specialized Strategies Strategies for Emerging Markets ~The importance of emerging markets is shown in the growth of foreign investment into developing countries from 23.7 $ billion in 1990 to $ billion in (BRIC) ~ First Mover Strategies ~Being one of the first to enter the market and capturing the market share and building relationships with the most attractive local partner The advantages of being a first mover ~ becoming established first ~ advantage in the competitive market in influence for long term development ~ Privatization helps position a first mover with an advantage of holding a large part of the market share when governments protect their firms and the there is a hold on “market liberalization” ~monopoly of Telmex over networks with international partners

Base of Pyramid Base equal fully 2/3 worlds pop. (4-5m,<$2000) No one size fits all, Rethink things. IPAC conference Morgridge International Reading Center: Dr. Zafar U. Ahmed, Founding President/CEO, Academy for Global Business Advancement & Founding Editor-in-Chief : Journal for Global Business Advancement Shampoo, Nano, Cell Phone Muhammad Yunus-The Grameem Bank - Micro Loaning in Bangladesh, built on trust.

Can Internet and Mobile Access Transform Developing Countries for the Better? Entrepreneurs see great potential in reaching the poorest countries on the planet and developing them from the base up. Ex: South Asia, Africa Challenges such as low literacy rates, low infrastructure, and corruption have made it almost impossible to develop these countries fully. These entrepreneurs are extremely persistent and refuse to give up.

In terms of Wireless service/Internet services: Africa is the next great frontier From , internet penetration grew 1,809%. From 4 million to 86 million. Mobile subscribers at 296 million at beginning of 2008 and grew to 370 million by end of year. The increase in mobile subscribers over last 5 years defies all predictions, putting Africa at top for highest regional mobile growth rate.

However… Despite rapid growth, ICT (Information Communication Technology) levels are still very far behind the rest of the developed world. >5 % of Africans use the internet and research shows African countries are facing a number of challenges in increasing ICT levels. Challenges include: Lack of full liberalization of market Limited availability of infrastructure, such as shortages of internet bandwidth. Prices for services remain very high compared to income levels. ITU (Information Society Statistical Profiles) says there are practically no cable networks & many countries face a shortage of international bandwidth. Only Countries to see significant progress in growth outside of South Africa are: Nigeria Kenya Ghana Tanzania Cote D’Ivoire

European Developments Ericsson, Alcatel, Motorola, Vodafone, Orange all have setup operations around the region. Other entrepreneurs, such as Greg Wyler(Terracom) have begun to see the potential. Wyler entered Rwandan market by signing a contract granting 300 schools connection to the internet. Company later bought out 99% of Rwandatel, national telecommunications company for $20 million. Since the deal was made, there have been repeated setbacks affecting Terracom’s operations, one being a steady electric source.

National Developments Africa Online Created by three Kenyans in 1994,launching as Kenya’s first online news source. As internet further developed, the program grew to greater heights and has connected multiple countries to the biggest news source on the continent. Still managed by the same men.

Other Problems… Most of African satellites were launched 20 years ago and are completely aged or out of commission The only connection to the network of computers and fiber optic cables that are the internet’s backbone is a $600 million undersea cable running from Portugal to the west Coast of Africa. Built in 2002 and was supposed to provide cheaper/faster web access, but failed to deliver those results. Africa as we can see is a region with plenty of potential, followed by plenty of setbacks. Still, the continent has come a long way in the last decade and if our entrepreneurs continue to pay attention to further developing the region we are bound to see a tremendous transformation one day.

International Entrepreneurship A combination of innovative, proactive, and risk- seeking behavior that crosses national boundaries and is intended to create value in organizations Typically large MNCs involved with International market Small/medium businesses entering international market Strategy Customization Export Local foreign market (Haiti Ex.)

Born-Global Firms -Firms that engage in significant international activities a short time after being established. Essentially, accelerated internationalization. Strategies: Global technological competence Unique-products development Quality focus Leveraging foreign distributor competences Market diversity

Tools of the International Trade Identify if your business can and should enter international market The ins and outs, how to get started with international trade Market research, beta customer feedback, viability analysis

Article business-global business-global

Videos Benefit of going global Growing your business one country at a time Article

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